Oldcastle: complaint regarding sale of Vitro subsidiaries

California-based Oldcastle Building Envelope filed papers on 2 May objecting to the hurried sale of Vitro SAB“s four US subsidiaries. According to court papers, Oldcastle officials claim that Vitro S…

California-based Oldcastle Building Envelope filed papers on 2 May objecting to the hurried sale of Vitro SAB“s four US subsidiaries. According to court papers, Oldcastle officials claim that Vitro SAB offers no explanation for why a hurried sale is necessary. There will be a hearing on 6 May for approval of auction and sale procedures. Officials at Vitro America, Memphis, announced on 6 April that the company and three other Vitro US subsidiaries, including Super Sky Products, had filed a motion asking the US Bankruptcy Court for the Northern District of Texas to enter orders for relief for the four subsidiaries under Chapter 11 of the US Bankruptcy Code. They also announced that they had entered into an agreement to sell all assets of Vitro America and Super Sky to an affiliate of Grey Mountain Partners, LLC, a private equity firm. The motion for sale does not say whether the buyer is affiliated with Vitro, nor does it propose how to allocate proceeds among the four Vitro companies. Even if the price is stated to be USD 44 million, part would be paid by assumption of debt. And, because the debts are not listed, there is, says Oldcastle, no way to know how much the sale will generate.